Metinvest and POSCO sign a Memorandum of Understanding

METINVEST, the largest vertically integrated mining and metals company in Ukraine, and POSCO, one of the largestfully-integratedsteel producers in the world, signed a Memorandum of Understanding (MOU) to commence exploring and implementing a wide-rangeof business cooperation.

The scope and scale of the cooperation will foresee information exchange relating to the each country’s general economy and steel market condition and trends, as well as the exchange of certainknow-howand technical information relating to the development of mining and steel industry operations.

To explore areas of mutual interests a joint working group will be formed, which will convene regular meetings on a periodical basis to discuss possible opportunities. The areas of mutual interest could include, among others, possible joint research and development projects relating to joint exploration and production of raw material sources, production and commercialization of high quality steel rolled products and pipes, and other areas.

Igor Syry, the CEO of METINVEST HOLDING, LLC, commented: “We are pleased with the agreement reached to join efforts with POSCO which has reputation as the world industry leader in product quality and technology. We consider this cooperation as recognition of the strategic steps taken by Metinvest to improve our effectiveness and enhance the quality of our products and to become a major player in the European and world markets.”

“We at POSCO are looking forward to exploring more opportunities with Metinvest as a partner”, commented Mr.Joon-YangChung, CEO of POSCO. “We believe that both companies working closely and using their potential, will be better off in supporting their countries in overcoming the global economic crisis and preparing for new market challenges after the recession.”

Briefing note:

POSCO is one of the largestfully-integrated steel producers in the world. POSCO engages in the manufacturing and sale of various steel products. It exports its products primarily to China, Asia, Japan, North America, Europe, and internationally. The company was founded in 1968 and is based in Seoul, South Korea.

Metinvest is an international vertically integrated mining and steel group of companies. Production facilities of Metinvest enterprises allow complete satisfaction of internal consumption of raw materials, liquid steel andsemi-finished products in the company’s Ukrainian holdings, and allow Metinvest to be a key supplier to European and Asian enterprises. Metinvest Group shareholders are SCM Group (75%) andSmart-Holding Group of Companies (25%).

The companies of Metinvest Group have capacity to produce 10.8 million tons per year of crude steel, more than 11 million tons per year of rolled stock and semi finished steel, over 5 million tons per year of metallurgical coke and over 40 million tons per year of iron ore. The Group comprises 26 industrial companies in mining and steel, many of which are located in Metinvest’s home country of Ukraine. Metinvest also has its operations in Western Europe (Ferriera Valsider and Trametal – Italianre-rollingcompanies and Spartan UK, British carbon steel plate producer) and USA (UCC — producer of metallurgical and steam coal headquartered in Teays Valley, West Virginia).